One such stock that you may want to consider dropping is ION Geophysical Corporation (IO), which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in IO.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from a profit of 9 cents a share a month ago to a current loss of 15 cents.
Also, for the current quarter, ION Geophysical has seen 2 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to breakeven point from a profit of 6 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 17.1% in the past month.
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.
If you are still interested in the oil and gas sector, you may instead consider some better-ranked stocks including Sandridge Mississippian Trust II (SDR), Atlas Resource Partners, L.P. (ARP) and Cheniere Energy, Inc. (LNG). While Sandridge sports a Zacks Rank #1 (Strong Buy), Atlas Resource and Cheniere Energy carries a Zackis Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment